This once high-flying restaurant stock is facing a new reality these days.
Chipotle Mexican Grill (CMG 2.12%) reported its financial results for the second quarter on Wednesday afternoon, and the market was disappointed, to say the least. The company’s adjusted earnings per share matched Wall Street’s estimates, but its revenue of $3.1 billion was below expectations. From where they closed on Wednesday, shares fell by more than 14% in the following session, and were still down by more than 12% as of late afternoon Friday.
This restaurant stock has still been a rewarding holding for its long-term investors, as it has climbed 102% in just the past five years. But some pessimism has taken hold, and it currently trades 32% off its peak. Does this setup make Chipotle a once-in-a-generation investment opportunity?
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